New Pallet Standard Helps Automotive Industry, Could Inform Other Supply Chains

Suppliers Partnership for the Environment (SP), an association of global automakers and their suppliers working together to advance environmental sustainability through the automotive supply chain, has published a new voluntary wood pallet standard for shipping and storing automotive parts. This move helps further the automotive industry’s efforts to improve efficiency and curb solid waste – and it might also be insightful for other supply chains. We will explore that latter thought further below. Pallet standardization has been a topic of debate since World War 2 and, as underscored in the new automotive pallet size standard, has the potential to improve supply chain operations more broadly. 

The Automotive Wood Pallet Specification 48” x 45” for Shipping and Storing Car Parts

The automotive industry uses 48” x 45” wooden pallets for transporting automotive parts via freight. Car parts including engines, transmissions, body panels, tires, exhaust systems, and batteries are shipped on this standard pallet size locally and internationally. The 48 x 45 footprint wood pallet is primarily used as backup packaging in the tier-to-OEM (Original Equipment Manufacturers) supply chain and for the automotive parts aftermarket. 

Suppliers Partnership for the Environment (SP) formed a cross-industry team to address the challenge of inconsistencies in wood pallet specifications and support industry sustainability initiatives. Magna International chaired the Sustainable Packaging Work Group’s Wood Pallet Sub-Team.  

“Opportunities to enhance the reuse potential of wood stringer pallets and improve efficiencies through the supply chain were identified through collaborative discussions between OEMs, tiered suppliers, packaging manufacturers, industry recyclers, and other subject matter experts working through SP’s sustainable packaging work group,” Kellen Mahoney, Director, Suppliers Partnership for the Environment (SP), explained in an announcement.

While 48 x 45 automotive pallet is already the standard footprint, pallet variability has hindered reuse efforts. Several tiered suppliers were found to have flexible 48 x 45 footprint wood pallet specifications, while different North American OEMs have unique specifications. This variability has restricted the potential for pallet reuse and remanufacturing for OEMs and their suppliers. 

Because of inconsistencies, most wooden pallets have limited internal reuse potential and are often sent to pallet recyclers to be recycled or remanufactured. Remanufacturing involves disassembling pallets and using salvaged components to build “remanufactured” pallets. While this process keeps wood out of the waste stream, the result is less desirable than having pallets of consistent quality that could be reused internally.

The resulting guidance document, Automotive NA 48 x 45 Wood Stringer Pallet Specification Recommendations, offers voluntary industry-developed recommendations to aid automotive original equipment manufacturers (OEMs) and their suppliers within the North American region in sourcing uniform 48 x 45 wood stringer pallets. The goal is to enable increased reuse and improve efficiency across the automotive supply chain. It is available to download at no charge.

The 48” x 45” wood pallet standard follows other published works by Suppliers Partnership for the Environment (SP). In November 2023, for example, the group published Sustainable Packaging Specification Recommendations for Automotive Expendable Packaging.

Ideas for Other Supply Chains

Some supply chains, such as grocery companies, have promoted pallet standardization since the 1960s. The chemical industry has established accepted industry standards with its CP pallet specifications. Initiatives to coordinate pallet specifications to support efficient material handling and reuse have existed since the Second World War (Why Use Two If One Will Do?).

Pallet variability, however, continues to be a thorn for many pallet users. Inbound pallets may be inconsistent with material handling systems and sub-optimal for storage, for example, or impede achieving trailer fill requirements. In the warehouse, emptied pallets, as exemplified above in the automotive example, might not be suitable for reuse. Even if a standard wooden pallet has the correct footprint, it might have been designed for a lighter load and unsuitable for a particular reuse application. 

If the variability of inbound pallets is impairing the efficiency of your operation, it might be time to reach out to suppliers. Sometimes, pallet issues can be resolved by working with your vendor directly. In more complex supply chains, a collaborative industry approach is warranted, such as in the case of the working group assembled to document the new automotive 48” x 45” wood pallet standard. If you are not sure about your next step, contact PalletOne. As the largest pallet manufacturer in North America, our national sales team has been helping a vast array of supply chains optimize their pallet systems for decades.